Jakarta. Indonesia and Canada are stepping up efforts to deepen bilateral trade and investment ties as the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) moves from ratification toward implementation.

Chief Economic Affairs Minister Airlangga Hartarto discussed preparations for the agreement with Canadian Minister of International Trade Maninder Sidhu on the sidelines of the Canada Investment Summit in Toronto on Monday.

The meeting comes as bilateral trade continues to expand. Trade between Indonesia and Canada has grown by an average of 9.13% annually since 2021, reaching $3.1 billion in the first half of 2025, up 13% from the same period a year earlier, according to the Coordinating Ministry for Economic Affairs.

Signed in September 2025, ICA-CEPA is Indonesia’s first comprehensive economic partnership agreement with a North American country. The agreement is designed to expand market access, investment and economic cooperation between the two countries.

Both governments are targeting implementation by the end of this year.

Under ICA-CEPA, Canada will eliminate or reduce tariffs on more than 90% of its tariff lines for Indonesian products, while Indonesia will do the same for nearly 86% of Canadian tariff lines.

Indonesia’s exports to Canada are projected to reach $11.8 billion by 2030 following full implementation of the agreement, with opportunities spanning critical mineral downstreaming, clean energy, agri-food, sustainable fisheries, infrastructure, financial services and the digital economy.

Beyond bilateral trade, the agreement is also expected to strengthen Canada’s economic engagement with the Indo-Pacific. As Southeast Asia’s largest economy, Indonesia can serve as a gateway for Canadian businesses seeking to expand their presence in ASEAN.

Airlangga and Sidhu also agreed to address challenges that could affect implementation, including standards requirements, sustainability and labor practices, as well as the capacity of micro, small and medium-sized enterprises to access new markets.

The two countries also highlighted the need to improve logistics infrastructure and trade facilitation to ensure businesses can take advantage of the agreement’s benefits.

“Today’s meeting reaffirms Indonesia and Canada’s shared commitment to ensuring that ICA-CEPA delivers tangible benefits for businesses in both countries,” Airlangga said.

Going forward, the two sides will focus on concrete implementation measures, including accelerating dialogue on critical minerals and technical economic cooperation.

Indonesia’s delegation included Indonesian Ambassador to Canada Muhsin Syihab, Coordinating Ministry Secretary Susiwijono Moegiarso, Deputy for Economic Cooperation and Investment Edi Pambudi and Indonesian Consul General in Toronto Vevie Damayanti.

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